Sony's latest strategic investment is sure to augment the already flourishing link between the music and gaming industries. The parent company of Sony Music has moved to acquire a $250 million minority stake in Epic Games, makers of the hit video game franchise Fortnite.
The investment will enable the continued pursuit of crossover partnerships that have already begun to shakeup a rapidly shifting digital entertainment landscape. The two companies have already demonstrated record-setting synergy this year. In April, Travis Scott, a member of Sony's Epic Records roster, drew in Fortnite's single largest audience to date with his virtual Fortnite concert, pulling in over 12.3 million concurrent viewers.
Kenichiro Yoshida, President and CEO of Sony, has expressed eagerness to identify new crossover opportunities through the partnership. "Through our investment, we will explore opportunities for further collaboration with Epic to delight and bring value to consumers and the industry at large, not only in games, but also across the rapidly evolving digital entertainment landscape," Yoshida said.
From an entertainment perspective, Sony remains a triple-threat in the music, gaming, and film industries. Moreover, Sony's closer ties to Epic Games could prove advantageous as the company gears up for the start of gaming's next chapter with the release of the Playstation 5. At Epic's current $17 billion valuation, Sony's investment equates to around 1.5% ownership.